Findings from the sixth annual MullinTBG/PLANSPONSOR Executive Benefit Survey show employer sponsorship of nonqualified deferred compensation plans reached an all-time high of nearly 94%, indicating that plan sponsors continue to view nonqualified deferred compensation plans (NQDCPs) as an essential component of any competitively structured executive benefits package.
Nearly 45% of companies offered financial planning benefits to executives in 2011, demonstrating that plan sponsors recognize the need to help participants meet their retirement savings goals by providing access to expert advice and guidance.
Although retirement confidence remains at near-record lows, NQDCPs have fared well the past four years. Plan participation remained steady at 46.4% of the eligible population, with the highest levels of participation (58.0%) seen in plans that both offer a company match and are informally funded.
Respondents were asked to describe their criteria for determining plan eligibility—title, job grade or some combination of all three. Sponsors’ responses varied according to their distinct corporate philosophies, title (24.6%) and job grade (23.0%) emerged as the most prevalent criteria for determining eligibility.